Challenger's (ASX:CGF) FY22 profit could hit $500m

Company News

by Melissa Darmawan

Traders are rewarding Challenger (ASX:CGF) after realising that its fiscal 2022 profit ending June could hit nearly $500 million.

The company revised its guidance "towards the upper end" of its $430 million to $480 million upward driven by momentum in the life business after sales rose 10 per cent to $2.7 billion in the third quarter.

Fund under management of 8 per cent to $100 billion were attributed by the derecognition of Whitehelm Capital, however, net outflows fell with a major institutional investor redemption pulling $1.3 billion from the business.

The investment manager recently bought bank MyLife MyFinance, however analysts believe integrating its banking and wealth business could come with its challenges if they take lead from the big banks who have been spinning off its wealth businesses over the years.

Shares are soaring 10.1 per cent to $7.52.

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